ExxonMobil to conclude 4th exploratory South Sulu Sea drilling

ExxonMobil Exploration and Production Philippines B.V. is planning to conclude this month the drilling operations of its fourth exploratory well — Babendil-1 — in South Sulu Sea. The mining firm eyes to complete the drilling around the second or third week of September, said Energy Undersecretary Ramon Oca. “[ExxonMobil] hopes to complete its drilling operations within the month if there are no technical problems," Oca clarified. The company, which began drilling the fourth well in the first week of August, bore Babendil-1 to a total depth of 4,531 meters (14,865 feet) using the drilling rig West Aquarius. ExxonMobil has already spent around $400 million for the drilling operations of its four wells, which are covered by service contract (SC) 56. SC 56 includes the gas-rich Sandakan basin and covers an area of 8,200 square kilometers. ExxonMobil holds a 50-percent stake in the SC 56. Mitra Energy (Philippines) Ltd. holds 25 percent while BHP Billiton (International Exploration Pty. Ltd.) owns the remaining 25 percent. ExxonMobil said it proceeded with the drilling operations of the fourth well even without the participation of Mitra Energy. “Mitra Energy has elected not to participate in the Babendil-1 well," ExxonMobil said. It would be likely that Mitra Energy failed to raise enough fund for the for the fourth well, Oca said. Energy Secretary Jose Rene Almendras earlier said the ExxonMobil’s three exploratory wells have provided government with “very useful data." Particularly, Almendras said both the third and fourth exploratory well of ExxonMobil showed positive for gas. The Sandakan basin is estimated to contain 750 million barrels of oil, which means it can supply the domestic market for a period of seven years. “The data will now be analyzed by ExxonMobil. Studies are being conducted to integrate the results of all the wells into a further geologic understanding of the block's potential," Almendras said. -- JE/OMG, GMANews.TV